Cisco will lay off another 4,000 workers and focus on cybersecurity and AI

Next week, Cisco will announce a new round of staff cuts during its quarterly report, which will lay off approximately the same number of employees as in the first wave of cuts in February of this year – about 4,000 people, Reuters reports, citing informed sources.

Image source: Cisco

According to Cisco reporting, as of July 2023, the company employed about 84,900 people. After the Reuters report, Cisco shares fell 1%, and since the beginning of the year they have fallen 9%.

As the largest manufacturer of networking equipment, Cisco has faced weak demand for its products and supply chain constraints. In this regard, the company began diversifying its business by purchasing Splunk, a company specializing in cybersecurity and big data analysis, for $28 billion. The deal will allow Cisco to reduce its dependence on hardware sales by promoting a subscription business model. According to sources, the new layoffs are due to the fact that the company is shifting its attention to areas with higher growth rates, such as cybersecurity and AI technologies.

The company is committed to incorporating AI solutions into its offerings, announcing in May a goal of securing $1 billion in orders for AI products by 2025. In June, Cisco launched a $1 billion fund to invest in AI startups such as Cohere, Mistral AI and Scale AI. Cisco also said at the time that it had acquired 20 AI companies over the past few years.

admin

Share
Published by
admin

Recent Posts

Bitcoin jumped over $88,000 – in a week it added $20 thousand in price

After Donald Trump's victory in the US presidential election, the Bitcoin rate has been steadily…

58 mins ago

Blizzard will revive the classic Overwatch, but only for a while and inside Overwatch 2 – a limited-time mode Overwatch: Classic has been announced

Following Friday's teaser, publisher and developer Blizzard Entertainment has introduced a limited-time mode for its…

3 hours ago

General Galactic will use on Earth technology created to extract methane on Mars

Technologies developed for use in space and on other planets may well find application on…

3 hours ago

The developers of Black Mesa have announced a cooperative shooter about corporate warfare – trailer and details of Rogue Point

Following the February teaser, the American studio Crowbar Collective (Black Mesa), with the support of…

3 hours ago